Biomea stock crashed Friday after the Food and Drug Administration placed two of the company's diabetes treatment studies on hold, citing concerns of liver toxicity.
The drug, BMF-291, was in early-stage testing for patients with type 1 and type 2 diabetes. The FDA noted there were possible drug-related liver toxicities after Biomea Fusion increased the dosage in patients with type 2 diabetes.
"We respect the FDA's decision and agree that patient safety is paramount and our top priority," Chief Executive Thomas Butler said in a statement.
The company noted BMF-219 has generally been well tolerated in testing thus far.
But on today's stock market, Biomea stock plummeted 63.3% to 4.14. Shares hit their lowest point in two years at the open.
Biomea Stock: Most Advanced Program
The study in type 2 diabetes treatment is Biomea's most advanced. The company is also working on treatments for forms of leukemia, lymphoma and myeloma, as well as drugs for solid tumors.
Biomea stock went public in 2021. Shares tumbled through half of 2022, but took off in the latter part of the year and eventually topped out at 43.69 in mid-2023. Since then, Biomea shares have slumped considerably.
Today, Biomea stock has a low Relative Strength Rating of 7, putting its 12-month performance in the lowest 7% of all stocks, according to IBD Digital.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
